Russia-Iran oil deal confirmed

Russian Energy Minister Alexander Novak issued a new statement on Wednesday, in which he confirmed the oil deal with Iran.

Earlier this week Russia announced that it had agreed a five year deal with Iran worth approximately US$ 20 billion (£11.8 billion). Under the terms of the deal Russia would buy up to 500 000 bpd of crude oil in exchange for Russia equipment/goods.

However, the Russian government later withdrew their statement, offering no reason for doing so.

According to Reuters, yesterday’s statement gives no indication in regards to volumes or the timeframe of the deal. Novak said: “Based on Iran’s proposal, we can participate in arranging crude oil shipments, including to Russia….Volumes are to be determined by market needs”.